Vendor-managed inventory system with partial backordering for evaporating chemical raw material

Document Type: Article


School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran.


Consider a supply chain including a re nery producing evaporating chemical product, an exporter, and one or some engine oil producers outside the exporter's country. The exporter uses vendor-managed inventory system implemented between re nery and exporter to decrease his/her inventory cost. This paper develops two models with partial backordering for evaporating chemical product developed in a two-layer chain including
single re nery and single exporter with one product before and after utilizing vendormanaged inventory policy. Demand and partial backordering rates are deterministic and constant. A numerical example is provided to illustrate the applicability of the proposed model and solution method.


Main Subjects